there has to be a culture fun -- from the federal grant all the way down in research. they should hammer out what the appropriate compromise is to repatriate all those overseas profit corporations are not putting back into our or economy. the largest beneficiary would be california. we want to see what the cutting edge is. most of a still look for california. -- loomost of us still look to california. what governor brown said about the traditional politics is all about taking the thing in making it fresh. to a certain extent, i tried to be a writer in college. i failed miserably. a professor said everything has been set but not everything has been said superbly. even if it had, everything must be said freshly again and again.

you have to see a fresh lead to a certain extent. the real issue with -- in terms of asking the president, what are the things that matter most, a bass part of those profits would be invested in california. colorado would have a significant -- pretty much every state in the country would benefit. you look at the companies based in silicon valley. they have offices, you want to expand your business, think about those young people in colorado. everything -- stated say the same thing. that money would get spent over the country very rapidly. >> thank you. governor brown. >> it is a good idea to bring back that $1 trillion sitting out there. how to do that, it remains to be seen. but then that will require some other tax. that would be my big request

like everybody else. get america's finances under control and that will take both parties. it will take taxes and it will take reduction in commitments that have been made. it now can be validated. let's get this but do it in a way that exacerbates the uncertain economy. the second -- we have to happen through innovation. whether it is the space program or tax credits for renewable energy. all that is important. we have to keep that going. that will get hard because we will face is demographics. that is my 74th birthday on

april 7. i am aware of the and aging population which i have become and we are an aging population relative to what we were. luckily, we have millions of fresh arrivals that are younger and are energetic and they come from all over the world. we have to make sure our education system lifts them to their highest aspirations. when the society ages, it tends to -- it declines. that is the big demographic imperative. i was reviewing one of my favorite books on the roman republic. how did this village on the tiber grow to be the absolute leader of the known world in a few hundred years? it expanded its territory by plunder, by what ever. details.

it was not pretty. [laughter] it added people, it kept getting bigger and incorporated the people and to roman citizenship. it became very consolidated, expanding group of energetic people. and they'll work. they were not just a bunch of talkers, they were doing. -- there were doers. -- they were doers. we have to consolidate on this. we have to find the common path that will enable us to make the investments and undergo the sacrifice that is required because it is not all ice cream and cake here. you have to curtail consumption. whether it is a business or

household. in terms of -- the free sector. it is still the same game. looking out for the future, saving for tomorrow and investing that savings and. that is what we have to do. i think it is a tough order of this matter of innovation is part of it. but also getting us to come together. we can talk about regulation and pension and taxes and the government. a lot of that is [inaudible] a survey said housing prices are too high and that is a negative factor on recruitment. i thought, maybe we can bring the prices down. foreclosure works magic. i do not think you want that. you want rising wealth which could translate into a rising houses -- housing prices. you can increase density and

breakdown similar rules, you get more people. there's a lot of things. as i drove down here from oakland cut -- oakland, i saw those cars in the ordinary lanes. one person per car. you have this one person with all this steel and plastic and oil. it is ridiculous. we're figuring out ways to do that. whether it is high speed rail or electric cars. the first will be rolling off the factory in treatments in the next few months -- in three months and in the next few months. yes, the innovative companies are small. the electric cars -- the tanks are small but so is fairchild

or in tal or hewlett-packard -- intel or hewlett-packard or steve jobs. the seats we plant brings the vast forests of new products and new technologies and new patents in the future. that is where we have to -- we have to keep our eye on the main thought here. that is the discipline, the imagination, and the investment. that is what makes california -- that is why people are still coming here. they're not staying in colorado, i am sorry to say. they're right here. [applause] >> just briefly, setting aside plunder for a moment. >> i am sorry about plunder. it is a big part of wealth creation. >> could you talk briefly about your turn initiative? >> it is going well.

mike rossi is leading the charge. i have met with what i think will be the next president of china. we have delegations from china to come here. we're sending delegations there. this is not just business as usual. we're getting detailed committees and proposals, a couple of the key states. we want good coming this way. we want good going out way. -- goods coming this way and we want goods going out that way. >> are you doing anything like that? >> we have been working on the north-south access. we have a biannual that denver works on that brings people

together for cultural, business, intellectual exchange and focuses on mexico and chile and brazil. one of the great things we're missing right now, it is part of the root of this mess about it -- immigration. our partners are right there. those old movies where people -- there was the girl next door, and the hero tries to fall in love with some likely candidates. she turns out to be loyal and ticks down her hair and -- takes down her hair and glasses. that is mexico. brazil and you'll get all those countries, we have to go look at china. we have to reach out to india. i went down to mexico on an economic development mission and was the first governor to go there in four years from any state.

we're missing a tremendous opportunity. >> thank you. governor brown, i'm sure you know that on any given day, people from other states are knocking on doors of co's in the valley and trying to get them to expand in other states or move to other states. someone in this room may have engaged in that. >> they cannot all expand in california. we are try to help california. quex their offering tax breaks. >> we are not offering a break. >> not only you. what do you say to the ceo's? what are you trying to do it? what are two or three things you are doing to keep companies here? >> we take specifics. i met yesterday with the representative of nissan and they're very interested and

supportive of the installation of high-speed chargers throughout california. we have a plan, criticized by some but nevertheless, well funded by a legal settlement of $100 million. to get these charging stations in throughout the bay area and down the coast to los angeles. they sold 5000 electric cars and they want to keep expanding. problem, permits. some people are making it hard, some cds are making it too difficult to get these charging stations up and running. we will deal with that city by city and we will have success. secondly, the utility's charge various fees to set up and provide the electricity. we want to make sure that it is cost recovery and to not be unreasonable.

we meet with them if their problem and we react. through the public utilities commission, through local regulation, we react and try to do everything we can to solve problems. if you are talking about deals like if you come to california, we will pay 7000 for any job, we have a little bit of that but it is hard to pay people for their business activities. we do not have enough money. they're doing that all over the state. cutting deals. we are doing that in some respects. it is our race. how does michigan spent so much subsidy attracting -- michigan is not doing that well. you have some money but what about other things to invest in and take care of? we want to make our regulatory

climate more transparent. we have a long way to go. we are open and ready to go. there is a lot of people who want to keep the regulation complicated or make it worse. it is -- this could be something, you have to fight and crush opposition to change regulations. it is not a paper exercise. it is a contact sport. you have to understand that. the world is like that. we look for things and wherever we can, will do it. it is very hard to cut people a tax break. we have been in the hole for 10 years. i think you have to cut and find more revenue. there are various ways to can do that. we are a high-cost state. america is a holocaust -- a

high-cost country. that is why, that is the way the world this. we're 4% of the world. an aging 4% with an emerging from a powerful china and india and brazil and other countries. we have to be smart to be competitive by lowering people's wages for reducing various benefits, that is problematic. the ceo's do not say you have to reduce my salary. what about for the secretary or the janitor, the person at the front desk, or the computer pro career? we have a balance here. you pull over here and push over there. we will do our best and we cannot always beat texas. you can go to arizona and do

your work out of there. a lot of people still move to silicon valley because of the synergy of so many bright people. if you can get the right people, get that cleaned up so we can bring smart people here and keep them here, we will keep adopting the game. [applause] >> governor hickenlooper, this is your chance. you have here a room full of silicon valley executives. what do you say to them to get them to expand or move to colorado? >> can governor brown leave the room for a minute? >> i am a great believer that luring companies from one state to the other does not help the country. i think it is a race to the

bottom. as the governor would say. it is useful for us to be as relentlessly pro-business as we can. we're very focused on education and we want to be the no. 1 state for solving this riddle that this country has become from being the no. 1 public education nation to one in the bottom half. we know the things -- at risk kids are coming from difficult neighborhoods and often broken families, they need a longer school day. that is nothing new there. there's another way to do that without spending a bunch of money. you can get your teachers union to agree to stagger the school day. some teachers come in early and you have study hall, some come in later and you have sports after school. there is a bunch of ways to address education. great teachers more than parent involvement or anything, you put a great teacher in front of a kid, they work miracles.

i think our goal is to say that we're going to fix education. we're working statewide to begin to implement. we do not want them filling out multiple choice tests but you have to measure the effectiveness of a teacher. our goal is sitting down with the union and having them at the table to say, how do you help us figure out, i was a geologist. i thought i would be a great geologist. i got laid off. i would still be a geologist. it turned out i was not that good a geologist. not too much fun to say but the facts are the facts. i was 20 times better running restaurants that i was a geologist. i had a much happier -- i tell a lot of my friends by not being willing to allow natural turnover, competition and success, it you are condemning 15 or 25% of the teachers to not fighting the joy they should have the opportunity to find.

those kinds -- that will be the real competition. silicon valley will be here forever. governor brown is right. this crucible of creativity and talented share will continue to create companies that are correct again. the immigration issue to making sure that smart calendar people can stay here. as a nation, we should be competing. where is the best place for the next generation of entrepreneurs? the governor was saying california has -- has this forest of productivity. perhaps colorado is the way that california was 25 years ago. the cost of living is less expensive. all these people want to be here the way they wanted to be in california 25 years ago. maybe that natural competition is healthy and different states

competing and try to be a place for we solve education and health care, and entrepreneurs who want to raise a family. if we're good enough at that, that is where ceos will want to expand. when they acquire a business, they want to put a division there. we have all these businesses and they got gobbled up by california companies. in most pates -- places, they keep their large workforce and a large group of people in colorado or texas or work in. our focus is how to excel rate that and have more of those entrepreneurs in colorado and have them stay. the old chinese proverb that one is the best time to plant a tree? 20 years ago. the second-best is tomorrow. or today. now that i think of it. if you use these proverbs, you have to get the right. i think that our goal in

colorado is to go out and say we're not going to try to offer corporate headquarters. if someone wants to come around and -- for we get 94 out of 100 votes to pass. we're working together with the teachers' union. we want to see it in colorado. what we want to do is create a competitive and ferment over the whole country where we're trying to accelerate these entrepreneurs. >> this has been delightful. what a wonderful conversation. thank you both. i cannot think of two better governors. >> thank you. what a great job you did. [applause] >> governor brown, governor hickenlooper, please do not

leave the stage. innovation is not popular in government. i did not get the nickname governor moonbeam by being conventional. we were give reminded that the best time to invest, 20 years ago, second best time, today. what great leaders, both of these dynamics state's half. we wanted to thank you both with just a small token of our appreciation and our deep appreciation as well to barbara of the san jose "mercury news." i know you cannot accept gifts. >> i would want to report that. >> we're hoping that sutter can accept a gift, the first dog. governor? [applause]

and governor hickenlooper, your dear friend and our dear friend, dan gordon could not be here but we wanted to make sure you enjoyed his borough -- brew. >> as i have many times before, let me assure you. [applause] >> our photographer would like to get your photos. >> with or without the kibble? >> all right.

>> to introduce this illustrates how, please welcome the ceo of our nation's second-largest green builder, a member of the silicon valley leadership group border directors, and the ceo of webcor builders andy ball. >> thank you [applause] -- thank you. [applause] welcome back to our third session. i hope you enjoy the first two as much as i did. i think we found out how much of a character governor brown can be we are going to talk about silicon valley and the bay area innovation to the economy today. as you look at the panel, talking about the silicon valley, we have the mayor of san francisco.

it will come into perspective, that when you have a giant like ibm anchor here in the valley, you are seeing in between companies like google and apple and facebook with incredible growth. in san francisco, mayor lee has welcomed to the fold in twitter, zynga, companies that are into cloud computing, hiring lots of people that not only want to live and work in the valley but recognize san francisco as being part of the valley. we are, indeed, fortunate, from san jose to san francisco, to be part of the innovation economy. we are finally seeing once again california's innovation is leading us out of the last three years of recession. i do not know about you but i am pretty tired of the recession. i made a statement several years

ago that it was about time for an adjustment to the economy, things were too expensive, overheated. two years after that, i regretted making that comment. it was great to hear jim say when you look at education, you look at the programs, traveling around the world, that there is one constant. there are people and technology that say this is a place they want to be. entrepreneurs say this is where they want to be. when companies like facebook are started at an institution like harvard and a pier, you start to recognize why this is so special and fiber and why innovation is a bleeding heart economy. so let me try to give some brief introductions about our panel today. i have to confess, i only just

met one of our panelists, lee said dyson, the ceo of coverity. she got a ph.d. in physics from mit but felt the urge to come out here to california and she did her research at stanford and lawrence berkeley. that is an indication we are getting smart people like her out to california to start companies like hers. 15 employees in 2008. it is interesting, we talk about cloud computing and these technology companies, but she takes electronic waste that is rich in carbon and recycles that into oil for plastics and a variety of other things. i wish i had more time to talk to you and get to know you because i am sure there's an interesting story that you will really enjoy hearing from her. you have already heard from

michael, who is wonderful at ibm. clearly, they are a leader in this area. with michael's travels around the world, he will share more of his experience, and that will also be an interesting perspective. i really want to welcome the san francisco mayor ed lee. it is difficult for me to call him mayor lee because i have always known him as ed. you are going to get to know him really well. the 43rd mayor of san francisco was born in seattle, went to college in maine, this tiny college out there. he decided to come back and get his law degree from uc-berkeley, and then was appointed by art agnos in government in 1979. he became the director of the

human rights commission under willie brown. he became the director of public works. 2005 city administrator, and then the fateful day in january 2011 when the board of supervisors could not decide on anybody and decided that family was not going to be a threat to their future political aspirations. [laughter] he got more than six votes, six more than anyone else. and he became the interim mayor. he did an amazing job. he is outspoken, both feet on the ground, a person you can trust, a person who is very honest, and based upon his experience, knows how to get the job done. i believe he is the best player ever that san francisco has had. we are so lucky to have him up there. he has balanced the budget, reform pensions, created jobs, and mayor, it has been a pleasure to work with you. i look forward to working with you further.

they san francisco transplant coming down here to work on yet another newspaper, the business journal, doing a great job of it, and james mcgregor. we welcome you here as a moderator. we know you have a lot of questions, so i will let you have at it. thank you. >> mayor lee, after that stellar introduction -- the first question is for you. it is apparent that you are trying to make san francisco more friendly for business and employees. can you talk about the payroll tax issue and how it is helping san francisco in the region? >> thank you, james, for the question. let me say i am happy to be here in silicon valley. i know the relationship